Lotto operator deal: an undercover ANC fundraiser?

28 November 2014

I will today write to the Minister of Trade and Industry, Rob Davies, requesting clarification on the decision to award the licence to conduct the National Lottery to Ithuba Holdings Pty Ltd. I will be requesting full disclosure of all the information regarding Ithuba Holdings, and all documents that were considered in awarding the licence.

According to the National Lotteries Act, before awarding the license, the Minister must be satisfied that no political party or office bearer has any direct financial interest in the company receiving the licence.  

However, Ithuba Holdings has strong links to the National Education, Health and Allied Workers Union (Nehawu), a major trade union which forms part of Cosatu. Nehawu is the sole shareholder in Nehawu Investment Holdings through the Tshedza Trust, its investment vehicle. Nehawu Investment Holdings, in turn, is a shareholder in Nehawu Lottery Investments, a member of the Ithuba consortium.

It is common knowledge that Nehawu are strong allies with the ANC, and strongly encourage their members to vote for the ANC in elections. Moreover, Nehawu has in the past given generous financial support to the ANC, with reports suggesting figures as high as R20 million.

The link between Ithuba and Nehawu leaves more questions than answers and I am not satisfied that this deal has been brokered without any benefit to the ANC.

With the license being worth billions of rands in revenue, it is crucial to ensure that Ithuba is above reproach, that its directors have no connection to any political party or organisation, and that no money is funnelled back to any political party. 

The DA will not allow the ANC government to abuse state funds as a party fundraising project. 

Statement issued by Geordin Hill-Lewis MP, DA Shadow Minister for Trade and Industry, November 28 2014

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